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Interaction effects between the agglomerative externalities affecting the survival of small startups

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  • Changhyo Yi
  • Jin Nam

Abstract

The purpose of this study is to identify the relationship between the survival of firms and the influence of agglomeration economies on firm location using a mixed effect Cox model considering random effects, given the industrial conditions of South Korea. Each agglomerative externality had a negative effect on the survival proportion of small startups except the related variety of the tertiary sector. However, the interaction effects between each externality and the location potential and among agglomerative externalities mostly played a complementary role to the survivability of startups; however certain effects reduced the survivability, and the effects were differentiated for each industrial sector. This study provides an advanced understanding of small firm performance after entry into the market in developing and developed nations.

Suggested Citation

  • Changhyo Yi & Jin Nam, 2019. "Interaction effects between the agglomerative externalities affecting the survival of small startups," Growth and Change, Wiley Blackwell, vol. 50(4), pages 1311-1337, December.
    • Handle: RePEc:bla:growch:v:50:y:2019:i:4:p:1311-1337
    DOI: 10.1111/grow.12322
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    Cited by:

    1. Cheng, Ruiqi & Yuan, Peng & Jiang, Gongxiong, 2023. "Growth, agglomeration externalities, and survival: Evidence from Chinese manufacturing start-ups," Journal of Business Research, Elsevier, vol. 154(C).

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